DeversiFi Trading Key (DTK)

As STARKs use a different signature scheme to the Ethereum blockchain, a STARK keypair needs to be generated, which allows for the interaction with the StarkWare high speed settlement system.Every time a DeversiFi trader submits an order to the exchange, or makes a deposit/withdrawal they are cryptographically signing a message using their Ethereum wallet private key that instructs their DeversiFi trading key on the required action. This is a process that is common to all self-custodial layer-2 exchanges that use zero-knowledge cryptography (STARKs, SNARKs etc).

When you register your Ethereum address with DeversiFi for the first time (the registration transaction) a DeversiFi trading key is generated behind the scenes in a trustless manner and is associated with your Ethereum address. You can think of your DeversiFi trading key as similar to an API key on a centralised exchange.

From January 2021 onwards it it no longer necessary for you to make a local copy backup of your DeversiFi trading key. DeversiFi now encrypts your DTK using your Ethereum signature and stores it encrypted on DeversiFi servers. This means that you do not need to worry about keeping backups of your DTK and can simply connect to the Exchange using Metamask or Ledger as normal.
Was this article helpful?
Thank you!